Chief Minister Jayalalithaa on Friday launched the AMMA Micro Loans scheme to help small traders affected by the recent floods.
A press release said roadside small traders like those selling fruits, vegetables or owning petty shops, who were affected by the floods, could access interest-free loans of up to Rs. 5000 to be disbursed through cooperative banks. The interest of 11 per cent on these loans would be paid to the bank by the State government. The beneficiaries could repay the loan in 25 weeks at Rs. 200 a week. Those who pay it on time would be eligible for a further loan of Rs. 5,000 at a low interest rate of four per cent.
The release said the banks would hold camps over a 10-day period starting Friday (except on Republic Day and January 31) to identify the beneficiaries.
On Friday, Ms. Jayalalithaa gave away the loans to five beneficiaries at the Secretariat to mark the launch of the scheme.
The camps would be held in all flood-affected districts including Chennai, Tiruvallur, Kancheepuram, Cuddalore and Villupuram.
Once beneficiary is identified, the documentation to access the loan would be done on the spot by officials of the respective banks. Five hundred such special camps would be organised till February 2.
